Research on World Agricultural Economy

Influence of Value Networks on Operational Efficiency in Smallholder Farming: A Systematic Literature Review

Charles Tsikada

Department of Transportation and Supply Chain Management, Faculty of Business and Economics, University of Johannesburg, Johannesburg 2006, South Africa

DOI: https://doi.org/10.36956/rwae.v6i2.1466

Received: 12 November 2024 | Revised: 2 January 2025 | Accepted: 22 January 2025 | Published Online: 8 May 2025

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Abstract

Smallholder farming contributes significantly to rural livelihoods and the national economy, yet farmers face challenges, such as limited market access, inadequate farming inputs, and fragmented stakeholder coordination that hinder their operational performance. These barriers prevent smallholder farmers from achieving optimal productivity and profitability. The purpose of the study was to examine the impact of value networks on the operational performance in smallholder farming, using a systematic literature review and drawing on stakeholder and network theories. The study explored how well-structured value networks could enhance the efficiency, resource flows, and market responsiveness of smallholder farmers. Eight-eight documents were extracted from academic databases and analysed using systematic literature review. The results of the study indicate that well-structured value networks can enhance operational performance of smallholder farmers by improving their coordination, resource exchanges, and market responsiveness. The study found that strong relationships within value networks enhance communication and reduce delays, thus providing smallholder farmers with better access to resources. It was further noted that timely access to inputs like seeds and fertilisers reduces bottlenecks and enhances productivity among smallholder farmers. This research contributes theoretically by proposing a value network framework applicable to smallholder farming. The framework emphasizes strategies for addressing the challenges faced by smallholder farmers, such as fragmented markets and limited access to technology. This study does not rely on specific data from smallholder farming but generalizes findings to smallholder farming contexts across similar agricultural settings. Therefore, future research should validate the framework in real-world settings and explore the role of social and environmental factors in enhancing the effectiveness of value networks.

Keywords: Value Networks; Operational Performance; Smallholder Farming; Supply Chain and Agricultural Efficiency

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